Lending Policy

Credit Policy

Venus Barter Private Limited (V MONEY)

1. Objective and Scope of the Policy

  1. Venus Barter Pvt Ltd is registered with the Reserve Bank of India (RBI) as a non-deposit accepting NBFC and complies with RBI directions from time to time. This Credit Policy defines the principles governing its lending business and shall be updated periodically in line with regulatory and legal requirements.
  2. The objectives of this Policy are:
    • Standardized lending policies and procedures
    • Credit risk mitigation and credit quality improvement
    • Definition of overall risk appetite
    • Underwriting framework and credit limits
    • Monitoring and recovery of outstanding credits
    • Description of all stages of the lending process
  3. The Company operates with the highest ethical and compliance standards and does not tolerate any contravention of laws or regulations.

2. Business Strategy and Operations

  • Business operations are financially sustainable and funded primarily through interest income and service fees.
  • Business Segments: Retail lending for personal credit needs; corporate and non-individual lending within approved risk appetite.
  • Sanctioning Authority: The Board of Directors is the sanctioning authority and may approve credit proposals on a case-to-case basis.

3. Purpose of Credit

  • Retail credit for consumer durables and curated lending products.
  • Corporate credit for business needs within regulatory limits.

4. Customer Selection

  • Salaried employees (public & private sector)
  • Self-employed individuals

5. Credit Underwriting

  1. Credit Approval Process: Application submission, KYC verification, credit appraisal, and sanction communication.
  2. Final Sanction: Credit granted only after assessing ability and intention to repay.
  3. Processing Fee: Charged at applicable rates, revised prospectively with due communication.
  4. Other Charges: Prepayment, late payment, bounce, cancellation, legal, and related charges.

6. Tenor

Retail credits are granted for a tenor ranging from 15 days to 90 days.

7. Determination of Interest Rates

Interest rates are determined based on cost of funds, operational costs, risk premium, customer profile, and external market factors.

  • Rates are annualized and transparently disclosed
  • Risk-based pricing and borrower categorization
  • Periodic review based on market and regulatory changes

8. Customer Journey

  • Independent digital journey (web/app)
  • Assisted online or offline journey

9. Pre-approved Customers

Pre-approved offers may be extended based on creditworthiness and alternative data, subject to customer consent.

10. General Information

  • Full disclosure of terms and charges before application
  • No discrimination on prohibited grounds
  • Clear communication of sanction and repayment terms
  • Advance communication before account becomes NPA

11. Reporting to Credit Information Companies

Credit information is reported and updated with CICs regularly as per regulatory requirements.

12. Periodic Updation

This Credit Policy shall be reviewed annually or as required.

For more information, visit vmoney.in